Fed sets October date for end of QE

clock • 1 min read

The US Federal Reserve has said it will end its purchases of government bonds in October, bringing to a close the quantitative easing (QE) experiment.

Since December, the Fed has been tapering purchases of $85bn per month by $10bn, down to $35bn last month. Plans outlined in the minutes from the June meeting show this continuing into August and September, with a $15bn reduction in October, as long as economic growth continues at its current pace. "If the economy progresses as the [Federal Reserve] expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting," the minutes read. US stocks rebounded on the news, reversing a two-day slide. The S&...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

The bonds were bought as part of the Bank’s financial stability mandate to reduce the danger of "fire-sale" dynamics.

BoE starts sales of bonds bought during emergency gilt operation

Sales based on market demand to avoid hurting markets

Valeria Martinez
clock 29 November 2022 • 1 min read
BoE's Ramsden: Autumn Statement not enough to stop rate hikes

BoE's Ramsden: Autumn Statement not enough to stop rate hikes

Ramsden made it clear that another large hike was his preferred option

Elliot Gulliver-Needham
clock 25 November 2022 • 2 min read
Government U-turns on 'call in' power due to be included in FSM Bill

Government U-turns on 'call in' power due to be included in FSM Bill

'Committed to the operational independence' of the regulators

Laura Miller
clock 24 November 2022 • 1 min read